AUSTIN, Texas, June 13, 2019 /PRNewswire/ -- Petros PACE Finance, LLC (www.petros-pace.com) has closed a $1.3 million Commercial Property Assessed Clean Energy (C-PACE) transaction to finance energy efficiency upgrades for the Battle Creek YMCA, marking the first C-PACE deal in Calhoun County, Mich.
The YMCA's current facilities were built before 1980 and have gone through renovations over the years. The C-PACE financing will allow the YMCA to make the much-needed improvements to the inefficient and outdated electrical and mechanical systems.
"Many nonprofits have high utility costs, but are too capital-constrained to justify the upfront expenses associated with energy-saving upgrades," said Mansoor Ghori, Petros PACE Finance CEO. "C-PACE makes it feasible for them to make these upgrades without diverting funds from their core mission because the savings generated will outpace the annual payments from the very beginning."
C-PACE is a relatively new, low-cost financing product secured as a property tax assessment that solves many problems that have historically prevented commercial building owners from investing in energy efficiency or renewable energy.
The YMCA will use the funds for new, more efficient lighting, heating and cooling units for the buildings and pool, along with other energy-saving property enhancements that will reduce electricity use by 47%. In addition to decreasing utility costs, upgraded lighting in the parking lot will improve security for members by illuminating the perimeter of the property.
Over the 22-year life of the loan, energy-efficient features will generate $3,233,342 in savings and a CO2 reduction of 68,384,274 pounds, the amount of emissions from driving 6,586 passenger vehicles for a year.
"The C-PACE financing allowed the Battle Creek YMCA an affordable option to upgrade our aging infrastructure in order to ensure we can continue to serve our members and the community," said Jill Kingsley Hinde, Battle Creek YMCA CEO. "It was a pleasure to work with Petros to secure financing on this project."
The project comes amid rapid growth of C-PACE as a financing tool for commercial property owners and developers in Michigan looking to boost sustainability and economic development. Petros PACE Finance closed its first deal in Michigan in 2016 and has seen steady market growth in the state. This marks Petros' eighth deal in Michigan.
"As the administrator of the Calhoun County PACE program, we are thrilled to help bring together Calhoun County's first ever PACE project," said Bali Kumar, CEO of Lean & Green Michigan. "This project shows, yet again, that energy-efficiency is a no-brainer for businesses and nonprofits alike, and we hope this PACE project is one of many more to come in Calhoun County."
About Petros PACE Finance
Petros PACE Finance, LLC is a national leader in the C-PACE marketplace, dedicated solely to providing long-term C-PACE financing to commercial property owners seeking to lower energy costs, reduce their carbon footprint and increase property values. Leadership has decades of executive-level experience in commercial lending and structured finance, with direct long-term institutional investor relationships. With billions in committed capital, Petros is able to close transactions in eligible C-PACE markets nationwide. To learn more about Petros PACE Finance visit our website at www.petros-pace.com.